You are thinking of buying a 10-year bond on the secondary bond market. The face value of the bond is $10,000 . the interest rate is 5 percent (0.05) per year, and the bond was issued exactly eight years ago. What is the value of the bond today?
a. $5,295.43
b. $9,070.30
c. $10,000.00
d. $20,000.00
e. $100,000.00
B
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Assume that Clara purchases a combination of products Y and Z such that, after she is done spending her limited income, MUy/Py = 25 and MUz/Pz= 15. Based on the equal marginal principle, Clara
A. is maximizing her total utility. B. should have purchased less Y and less Z. C. should have purchased more Y and less Z. D. should have purchased less Y and more Z.
University of Colorado reserves 5,000 free tickets to each home football game for students. Students must stand in line to receive their ticket. Football tickets are allocated through which method?
A) market price B) sharing equally C) personal characteristics D) first-come, first-served E) force
At low levels of employment, the Keynesian aggregate supply curve:
a. tilts downward to the right. b. tilts upward to the right. c. is vertical. d. shows a constant price level. e. shows a rising price level.
Provide an example of a modern day “Tragedy of the Commons,” and explain why it is an example of it.
What will be an ideal response?